Sashidhar Jagdishan, the Managing Director and Chief Executive of HDFC Bank, has claimed the top spot as the highest-paid bank CEO in fiscal year 2023, according to the PTI report. His remuneration saw a significant surge of more than 62% during the fiscal year, reaching ₹10.55 crore.
Kaizad Bharucha Follows Closely as Second-Highest Grossing Banker
Jagdishan’s colleague, Kaizad Bharucha, the Deputy Managing Director of HDFC Bank, is likely to be the second-highest grossing banker in the country, drawing ₹10.03 crore for the fiscal year. HDFC Bank is India’s largest private sector bank by assets and the fourth-largest bank by market capitalization as of July 2023.
Other Top-Paid Bank CEOs
Amitabh Chaudhry, the CEO of Axis Bank, secured the second spot with ₹9.75 crore in payouts for FY23. He was closely followed by Sandeep Bakhshi, the CEO of ICICI Bank, who received ₹9.60 crore for the fiscal year.
Uday Kotak Takes Token Remuneration
Uday Kotak, the billionaire banker and founder of Kotak Mahindra Bank, chose to take a token ₹1 as remuneration in FY23, a decision he made at the start of the pandemic.
Average Remuneration Hikes for Bank Employees
ICICI Bank granted its employees an 11% hike, while Axis Bank provided an average hike of 7.6%. HDFC Bank, in its annual report, reported a modest increase of 2.51% in the median remuneration of its employees for FY23. Federal Bank, known for having the lowest attrition rates in the industry, offered an average pay hike of only 2.67% in the same period.
Median Remuneration Comparisons
Comparing the median remuneration of top management, Sashidhar Jagdishan of HDFC Bank topped the list, drawing 150 times the average HDFC Bank employee’s salary. Sandeep Bakhshi of ICICI Bank followed at 119 times, and Amitabh Chaudhry of Axis Bank was at 101 times the median salary of staffers at Axis Bank.
Breakdown of Sashidhar Jagdishan’s Remuneration
According to the annual report, Sashidhar Jagdishan’s remuneration included a basic salary of ₹2.82 crore, allowances and perquisites amounting to ₹3.31 crore, a provident fund of ₹33.92 lakh, and a performance bonus of ₹3.63 crore. His remuneration showed a remarkable growth of 62% from the ₹6.51 crore he received in FY22.
Increase in Remuneration for ICICI Bank CEO Bakhshi and Axis Bank CEO Chaudhry
The overall remuneration for ICICI Bank CEO Sandeep Bakhshi was increased by over 35%, while Axis Bank CEO Amitabh Chaudhry’s remuneration saw a nearly 28% rise during the same period.
The banking sector’s remuneration trends come at a time when the industry is grappling with the challenge of employee attrition.
